Michael Warner, Co-Founder of DCanter, shares how trade policy uncertainty and rising tariffs are straining small retailers and limiting consumer choice.
For over a decade, Michael Warner and his wife have run DCanter, a boutique wine shop nestled in Washington, DC’s Capitol Hill neighborhood. Their mission is simple: bring thoughtfully curated, sustainably produced wines to their community. But increasingly, Warner says, federal tariffs are threatening that mission.
“We specialize in wines sourced from small producers,” Warner explains. “Most of them are organic or biodynamic, and about 85% of the wines we carry are imported.” That model, once an asset in a globally connected market, is now a liability as trade tensions and unpredictable tariff regimes inflate costs and disrupt supply chains.
Tariffs = Taxes on Consumers
At the heart of Warner’s concern is a message he wants policymakers to hear—loud and clear.
“A tariff is a tax that is ultimately paid by the consumer,” he says. “Businesses were already operating efficiently before tariffs, so there’s little room to absorb those costs. It either gets passed on in the price tag or cuts into staffing and other essentials.”
DCanter has already seen customers scaling back their purchases. “Instead of buying three bottles, they’re buying two,” Warner notes. “And that behavior isn’t limited to wine. It’s across the board—people are adjusting their spending because the basics cost more.”
An Unpredictable Trade Landscape
Even more damaging than the tariffs themselves, Warner says, is the uncertainty surrounding them.
“The unpredictability leads to inefficient use of capital. Businesses don’t know when or where the next policy shift will happen, so they either overbuy and discount later, or they underbuy and lose shelf space.”
For smaller suppliers and independent importers, this instability means real consequences. “If a product is out of stock for too long, customers move on to something else. It’s like starting over.”
Warner also worries about how the U.S. is being perceived internationally.
“Right now, the U.S. isn’t viewed as a dependable trade partner. That’s a stark change from the past. When you don’t know what the rules will be six months from now, you hesitate to invest or expand.”
Investors Taking Notice, Too
DCanter is in the midst of a fundraising round, with plans to open additional locations. But even here, trade policy casts a shadow.
“Investors ask us point-blank how we plan to mitigate the effects of tariffs,” Warner says. “They’re watching these issues closely. And if uncertainty continues, it could dry up investment in sectors like ours.”
No Lobbyists, No Megaphone
Like many small businesses, DCanter lacks the resources to fight these battles alone.
“We don’t have lobbyists or insider access,” Warner says. “We’re making decisions based on what’s on the front page of the Wall Street Journal. That’s our level of visibility.”
Rethinking the Product Mix
In the face of all this, DCanter is adjusting. The store is focusing more on “value-oriented” wines that suit everyday occasions rather than premium, terroir-driven bottles.
“With people dining at home more, we’re seeing a shift in what they’re looking for,” Warner says. “We’re refining our selection to reflect that.”
COVID, interestingly, was easier to manage than the current trade environment. As Warner puts it, “It was more straightforward—we were just fulfilling orders. But tariffs bring in an entirely new layer of unpredictability.”
A Call to Policymakers
Warner’s final message to lawmakers is both practical and urgent:
“The biggest thing we need is predictability. If you want businesses to invest, grow, and hire, you can’t change the rules every few months. We need a stable, reliable trade policy—something we can plan around.”
Without that, he warns, small businesses like DCanter will continue to face unnecessary hurdles—hurting local economies and communities in the process.